Vietnam’s 5-star hotels feel the pain
Results from Grant Thornton’s Hotel Survey 2010 show that the average room rates of high-end hotels across Vietnam decreased 31.9 percent during 2009.
The survey of mid to high-end hotels and resorts in Vietnam covers 7963 rooms across 69 three to five star hotels and resorts.
Results from the survey showed that 2009 was a turbulent period for hotel operators in Vietnam.
Said Matthew Lourey, corporate finance director at Grant Thornton Vietnam, “Hotel operators saw 2009 as an extremely difficult year in the wake of the global financial crisis. As a result, most participants in the industry suffered reductions in room rates, occupancy and profits during 2009.”
Although the average room rates for high-end hotels in Vietnam decreased 31.9 percent in 2009, the impact on occupancy rates was far less dramatic, with a 4.3 percent decrease overall.
Ken Atkinson, managing partner at Grant Thornton, said that “2009 was likely the most challenging year faced in recent times by the hospitality industry in Vietnamâ€.
“International arrivals decreased by over 11 percent and room rates fell dramatically across most sectors.”
Although both 3- and 4-star hotels experienced reduced room rates during 2009, at 2.9 percent and 12.1 percent respectively, it was the 5-star hotels that experienced the most pressure on pricing.
Five-star occupancy decreased an average of 6.3 percent and 4-star occupancy was down 14.1 percent in 2009. However, 3-star occupancy actually increased 2.1 percent showing that the movement in customer demand during the year was towards the less expensive categories.
RevPAR showed an overall decrease from $68.50 to $44.63 in 2009, a reduction of 34.8 percent.
The biggest decrease was seen in the 5-star hotel sector, which decreased 37.7 percent.
RevPAR for 4-star hotels declined 24.3 percent, with RevPAR for 3-star hotels increasing 0.9 percent in 2009, once more reflecting the more resilient nature of the mid-market during the year.
Ian Jarrett
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